Deck 3: Corporate Rights and Responsibilities

Question 1

Which Supreme Court case initially developed the idea of corporate personhood?

A)Santa Clara County v.Southern Pacific Railroad
B)Trustees of Dartmouth College v.Woodward
C)Buckley v.Valeo
D)First National Bank of Boston v.Bellotti

Answer 1

B

Question 2

The incorporation process (corporate governance)in the United States is currently regulated

A)under state,rather than federal,law.
B)under federal,rather than state,law.
C)under both federal and state law.
D)under local,state,and federal law.

Answer 2

A

Question 3

If we are going to argue that a corporation has ________ we would like it to fulfill,we also need to grant ________ that protect its ability to exist and do what it is designed to do.

A)responsibilities; rights
B)rights; responsibilities
C)purposes; rights
D)responsibilities; immunities

Answer 3

A

Question 4

Compared to European firms,US firms are

A)more likely to take a multiconstituency approach to CSR.
B)less likely to take a multiconstituency approach to CSR.
C)equally likely to take a multiconstituency approach to CSR.
D)much more socially responsible.

Question 5

Benefit Corporations and Certified B Corps are

A)legal entities in all states of the United States.
B)primarily located in European countries.
C)different names for the same types of companies.
D)different entities,one a legal entity and the other a certification process.

Question 6

A ________ approach to corporate social responsibility starts with a predetermined outcome and then works out how to achieve it.

A)normative
B)descriptive
C)conservative
D)critical

Question 7

In the United States,the idea of the Benefit Corporation was established in which year?

A)1810
B)1910
C)1970
D)2010

Question 8

A corporation CANNOT do which of the following?

A)Sue and be sued
B)Be criminally prosecuted
C)Own property
D)Create law

Question 9

What did the Citizens United case decide?

A)Corporations enjoy the same First Amendment rights to free speech as individuals.
B)The Bill of Rights applies to corporations.
C)Corporations may vote.
D)Corporations have a duty to protect their employees from discrimination.

Question 10

Dodge v.Ford stands for the legal principle that

A)managers and directors have a legal duty to put shareholders' interests above all others.
B)managers,not shareholders,have the legal authority to determine workers' wages.
C)the interests of multiple stakeholders must be considered in business practices.
D)corporations have a legal duty to act in socially responsible ways.

Question 11

A corporation's ________ is its responsibilities and obligations as determined by corporate law and founding corporate charters.

A)direction
B)general goal
C)public purpose
D)main objective

Question 12

The decision in ________ allowed corporations greater freedom to finance political ads/campaigns.

A)Buckley v.Valeo
B)Citizens United
C)Dartmouth College v.Woodward
D)Dodge v.Ford

Question 13

In Buckley v.Valeo,the US Supreme Court ruled explicitly that

A)corporations have different tax liabilities than individuals.
B)corporations and individuals have common tax liabilities.
C)religious institutions cannot make political donations.
D)political donations are free speech.

Question 14

The concept of "corporate personhood" in the United States recognizes that

A)corporations are primarily made up of groups of persons.
B)physical resources of corporations (buildings,machines,etc.)are secondary to human resources.
C)humans have a natural tendency to anthropomorphize inanimate objects such as buildings.
D)a corporation is a fictitious legal person that is endowed with many of the rights and responsibilities of a human being.

Question 15

In terms of oversight,liability,responsibility,and regulation,________ is considered the friendliest place to do business in the United States.

A)California
B)Delaware
C)Florida
D)Texas

Question 16

Laws establishing Benefit Corporations impose legal requirements for firms to

A)implement a stakeholder model.
B)implement a shareholder model.
C)pay a living wage to all employees.
D)use only environmentally sustainable manufacturing processes.

Question 17

Why is Dartmouth College v.Woodward an important case in CSR?

A)It illustrates the important relationship between education and other societal institutions.
B)It set the legal precedent that corporations are understood to be legal individuals.
C)It established legal autonomy for educational institutions to teach controversial subjects such as the theory of evolution.
D)It set the legal precedent of requiring state funding for public education.

Question 18

A ________ approach to corporate social responsibility allows the outcome to emerge,rather than imposing a fixed view about what should or should not happen.

A)normative
B)descriptive
C)conservative
D)critical

Question 19

Which of the following is NOT an objective outcome of corporate social responsibility?

A)A large retail chain pays its employees a living wage.
B)A small business implements a recycling program.
C)A firm focuses on the fluid process by which value is created for multiple stakeholders.
D)A manufacturing company requires its suppliers to use fair labor practices.

Question 20

The ________ is typically recognized as the earliest modern business corporation.

A)East India Company
B)Ford Motor Company
C)Lorillard Tobacco Company
D)Southern Pacific Railroad

Question 21

Describe the differences between Benefit Corporations and B Corps.Do you think either of these designations is necessary? Why or why not?

Question 22

What is corporate personhood,and how does it relate to corporate social responsibility?

Question 23

According to Yvon Chouinard,founder of the Patagonia company,one of the primary benefits of becoming a Benefit Corporation is that

A)it makes it harder for a new owner to abandon the firm's social mission.
B)it makes employees more dedicated to the social mission of the firm.
C)it makes the company's products much more desirable to socially conscious customers.
D)it makes it more difficult for a company to pollute the natural environment.

Question 24

Describe the difference between traditional approaches to corporate social responsibility,which focus on objective outcomes,and strategic CSR,which focuses on value creation.

Question 25

In general,religion plays a smaller role in public life in the United States than in many other developed countries.

Question 26

According to the textbook,________ is the world's most important Islamic finance center.

A)Iran
B)London
C)Malaysia
D)Saudi Arabia

Question 27

The textbook author argues that ________ offers the most efficient tools to deliver social progress.

A)government
B)for-profit firms
C)not-for-profit firms
D)families

Question 28

The US Supreme Court has held that corporations have the right to donate to political campaigns.

Question 29

Limited liability means that no one can sue a corporation.

Question 30

In contrast to modern-day Western finance,Islamic (or sharia)law

A)forbids the charging of interest.
B)encourages charging the highest interest rates possible.
C)requires borrowers to be devout Muslim believers in order to receive a loan.
D)encourages charging interest to infidels (nonbelievers)but not to believers.

Question 31

Value creation is the same for every business and every stakeholder.

Question 32

The term company comes from a combination of the Latin words cum and panis.What did the literal translation of these Latin words originally mean?

A)Friendship
B)Competitors
C)Breaking bread together
D)Corporation

Question 33

What is your reaction to the accusation that the Islamic finance industry is generating "interest-bearing loan(s)in all but name"? From what you have learned in the textbook,do you agree that Islamic financial products are sharia compliant,or are banks just finding ways to make people feel comfortable when investing money with them?

Question 34

In 2014,the US Supreme Court decision in Burwell v.Hobby Lobby allowed companies based around religious convictions to

A)refuse to hire lesbian,gay,bisexual,or transgendered employees.
B)refuse to hire non-Christian employees.
C)exclude contraception from health plans offered to employees.
D)exclude "sin stocks" (e.g.alcohol & gambling)from retirement investment plans offered to employees.

Question 35

A corporation is a fictitious legal person that is endowed with many of the characteristics of a human being.

Question 36

Which of the following statements best reflects firms' public relations toward religion?

A)Religion is easy to ignore because it matters to so few stakeholders.
B)Religion is hard to ignore because it matters to so many stakeholders.
C)Religion has very little to do with business.
D)Religion universally has a strong impact on all business practices.

Question 37

The major religions have traditionally rejected usury,which is

A)the use of religious property (churches,mosques,synagogues,temples)in for-profit activities.
B)the merger of religious and political institutions.
C)the establishment of religiously based businesses.
D)the charging of excessive interest rates on loans.

Question 38

In Islamic finance,a(n)________ is a sharia-compliant mortgage.

A)fatwa
B)halal
C)ijara
D)sukuk

Question 39

Delaware is considered to be the friendliest place to do business in the United States.Describe the reasons why this is so as well as the positive and negative implications of the reasons.

Question 40

The "Ben & Jerry's law" passed by the Vermont legislature

A)requires ice cream to be provided to all schoolchildren at least once per year.
B)requires the use of only non-GMO ingredients in food products.
C)allows firms to set maximum pay for CEOs at 20 times the average pay in the firm.
D)allows firms to consider factors other than shareholder value when deciding whether to accept a takeover offer.

Question 41

The US Supreme Court has made several landmark rulings on "corporate personhood." Some argue that the Court's decisions have used inconsistent logic.Describe why the Court's logic has or has not been inconsistent.